HWC THEORY – HOLD WITH CONVICTION.

HWC THEORY.

Holding With Conviction Theory.

Why retailer Gets Broken In Stock Market ?

♨️Those who did Not Got Broken They become Legends in Stock market.

♨️They survived & Made money only coz the stocks in which they invested had conviction to Hold with patience.

♨️During Down fall & panic in equities.Even legends has to Go Thru the Pain.

🔷️How Retailers Behave During Downfall & Panic :

♨️Retailer Dont want to Bear the Pain.

♨️They Lack Conviction & Patience.

♨️They want to make Quick Money.

♨️They want to buy at lowest price & want to sell at Higest price

♨️They feel frustrated as they keep watching there portfolio everyday & During downfall there stock keeps correcting.

♨️Giving Time to investments is only solution during downfalls.

♨️They want to recover there losses very quickly by trading in quantity or by trading Daily.Sometimes doing nothing is much better during.

♨️Retailers become more confident after a Run huge Run up in stocks.Thet Dont Buy when Stocks available at cheap & Appeling Valuation.

♨️First Do Research & Than Buy Stock. Generally People first Buys & Than Do Research.

🔷️CASE STUDY :

♨️Ace investor Rakesh junjunwala bought 6cr shares of Titan@Rs.3

♨️After few years stock rose to Rs.80

♨️So 18 Cr Investment Grew To 480cr

♨️In 2008 – Markets started correcting.There was no stoppage to the fall in market.Markets had biggest Correction.And even price of Titan corrected till Rs.20.

♨️So 480cr became 120cr in just few months.

♨️The rise was slow & Gradually But fall came in Just few months.So at that time ace investor Mr.Junjunwala was in Notional loss of 350cr.

♨️He had two Option either to Wait patiently OR To book whatever profits available on Table.

♨️He was still in profits ,He never booked profits & continued To hold stock with conviction & Believed in Management & Companies Growth story.

♨️But in 10 years i.e – In 2018 – 120cr Turned into 7000cr stake AND Still Titan Making New Life High even in 2019

♨️If Retailer investor had bought Titan in 2004-2005@3 Would he had even waited Till 80 levels & If waited till 80 & When 2008 fall came ,He would had booked whatever profits available on table.

♨️Only few Retail investor thinks long term with conviction where money multiplies 50 to 100 times or even higher.

♨️If retail investor bought any stock@100.He had planned to keep stock for 10years.As soon as stock starts correcting due to sentiments.

➡️At – 90 his conviction Starts shaking.

➡️At – 80 He feels frustrated.

➡️At – 60 He feels markets are not his cup on tea.Still he holds.

➡️At 50 – He books Loss & Stock dips till 40 he feels thank God he exited at 50.

➡️Now stock makes bottom around 36- 38 Zone and than moves to 500 in 5- 6 years.

🔷️Points To keep in Mind

♨️If Management is Good & Company is On right track nothing would happen in Long term.

♨️Investors with strong study & Conviction wins in markets over a period of TIME.

Disc – All Views Expresses are personal and for Educational & study purpose only. HWC THEORY is created by wealthcreatures team only,one should do deep Study on Sector & Individual stock before investing.Consult your financial advisor before taking any position based on above Theory.

4 thoughts on “HWC THEORY – HOLD WITH CONVICTION.

  1. Well written. But most average investors don’t do enough market research to develop the conviction to hold. As a result, they sell in fear. Mr.Jhunjhunwala had the conviction in Titan and he is reaping the rewards today.

    Personally, I am going to Hold Deepak Nitrite (HWC) for 10+ years. Hope its the right thing to do.

    I like their diversified business model and reasonably confident that they will keep adding more products to their portfolio to keep that growth going.

    Liked by 1 person

    1. Yes you can Hold For longterm with conviction.Good promotors.Good products.Chemical boom.Leader in phenol & Acetone.Superior ROCE & ROE.Huge expansion of Greenfield project in future.One of my fav pick from 2016 when was @100.

      Like

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